Swedish Industrial Output Grows More Than Economists Estimated

Feb. 10 (Bloomberg) -- Swedish industrial production grew
more than estimated in December, easing pressure on the central
bank to cut interest rates this year as the largest Nordic
economy defies the recession threat in the Euro-area.

Industrial production rose an annual 2 percent in December,
after increasing a revised 0.6 percent the prior month,
Stockholm-based Statistics Sweden said today. That beat the 0.4
percent median estimate in a Bloomberg survey of 11 economists.
Output was unchanged from a month earlier. Economists had
predicted a 1 percent decline.

Sweden’s central bank in December lowered its benchmark
lending rate for the first time since 2009 to 1.75 percent and
predicted it will keep rates unchanged over the next year. It
will announce its next decision on Feb. 16. Industrial orders
rose a monthly 8.6 percent and fell an annual 0.6 percent in
December, the office said.

Sweden’s economic growth will slow to 1.3 percent this year
from 4.6 percent in 2011 after expanding the most in the
European Union in 2010, the central bank estimated on Dec. 20.

The krona eased 0.2 percent against the euro to 8.8207 as
of 10:21 a.m. local time. It lost 0.2 percent versus the dollar
to 6.6432.